FCRA reporting for banks in India

Banks
have given a very crucial role in ensuring that the provisions of the
Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) the Foreign
Contribution (Regulation) Rules, 2011 (FCRR, 2011) are scrupulously
followed by the associations who have been granted prior
permission/registration under FCRA, 2010 as also by all other person(s),
as defined in the Act.

No
bank should credit any foreign contribution to the account of an
association / NGO unless it produces documentary evidence of having
obtained registration/prior permission from the Central Government for
the same.

In
case any foreign contribution is credited to the account of an
NGO/Association/Trust directly, the bank should not allow utilization of
such fund and inform the NGO/Association/Trust concerned to obtain
necessary permission/registration from the Central Government for the
same. Simultaneously, the bank should inform the Deputy Secretary
(FCRA), Ministry of Home Affairs, Govt. of India, New Delhi about such receipt.

Non-compliance
of the above by the bank will constitute a violation and will render
the defaulting bank liable for appropriate action by the Reserve Bank of
India. Attention of the Banks is drawn specifically to the following provisions of FCRA, 2010 and FCRR, 2011:

Section 17: (1)
Every person who has been granted a certificate or given prior
permission under Section 12 shall receive foreign contribution in a
single account only through such one of the branches of a bank as he may
specify in his application for grant of certificate;

Provided
that such person may open one or more accounts in one or more banks for
utilising the foreign contribution received by him.

Provided further that no funds other than foreign contribution shall be received or deposited in such account or accounts.

Section 17: (2) Every bank or authorised person in foreign exchange shall report to such authority as may be specified-

(a) prescribed amount of foreign remittance;

(b) the source and manner in which the foreign remittance was received; and

(c) other particulars, in such form and manner as may be prescribed.

Section 18: - (1)
Every person who has been granted a certificate or given prior approval
under this Act shall give, within such time and in such manner as may
be prescribed, an intimation to the Central Government, and such other
authority as may be specified by the Central Government, as to the
amount of each foreign contribution received by it, the source from
which and the manner in which such foreign contribution was received,
and the purposes for which, and the manner in which such foreign
contribution was utilised by him.

Section 18: - (2)
Every person receiving foreign contribution shall submit a copy of a
statement indicating therein the particulars of foreign contribution
received duly certified by officer of the bank or authorised person in
foreign exchange and furnish the same to the Central Government along
with the intimation under sub-section(1).

Rule-16: - Reporting by banks of receipt of foreign contribution:-

(1)
Every bank shall send a report to the Central Government within thirty
days of any transaction in respect of receipt of foreign contribution by
any person who is required to obtain a certificate of registration or
prior permission under the Act, but who was not granted such certificate
or prior permission as on the date of receipt of such remittance.

(2) The report referred to in sub-rule(1) shall contain the following details:-

(a) Name and address of the donor.

(b) Name and address of the recipient.

(c) Account number.

(d) Name of the Bank and Branch.

(e) Amount of foreign contribution (in foreign currency as well as Indian Rupees).

(3) The bank shall send a report to the Central Government within thirty

days
from the date of such last transaction in respect of receipt of any
foreign contribution in excess of one crore rupees or equivalent thereto
in a single transaction or in transactions within a duration of thirty
days, by any person, whether registered or not under the Act and such
report shall include the following details:-

(a) Name and address of the donor.

(b) Name and address of the recipient.

(c) Account number.

(d) Name of the Bank and Branch.

(e) Amount of foreign contribution (in foreign currency as well as Indian Rupees).